ExciteAtHome confirmed AT&T's withdrawal of its $307 million bid for AtHome assets, it says. As reported yesterday by CEDaily, AtHome also will cease operations after its three-month contracts with cablecos expire, and seek a Chapter 11 liquidation.
In a brief announcement, released late yesterday, AtHome said it had been notified by AT&T of its withdrawal, a move that prompted AtHome to decide on the liquidation, a CEDaily source said then.
AT&T spokeswoman June Rochford would not comment "on what they (AtHome) are doing" or AT&T's role. Several top AT&T executives recently resigned from AtHome's board, leaving just two representatives. When AtHome filed for bankruptcy in September, AT&T bid $307 million for its assets, drawing arguments that it had undervalued the company.
AtHome also says it finalized $355 million in agreements with a handful of cable companies to provide transitions until Feb. 28. "Upon expiration of the transition service agreement, ExciteAtHome intends to cease operations," it says.
Meantime, AT&T says it is getting closer to migrating its former AtHome customers to its new network. The company says it's moved more than 750,000 cable Internet users as of this morning, and expects to finish the transition by Friday morning. Late last Friday, AtHome cut off service to AT&T's 850,000 customers who were on AtHome's system, after the two could not agree on new contract terms.